The IPO craze and bonanza is finally upon us. The dam has broke and the IPO water is finally flowing. The most valued and prized private companies are going public. We’ve seen S1s from Lyft, Pinterest, and Zoom. There is a high likelihood we will see more. These could include Uber, Slack, Airbnb, and many others.
There are benefits to this (but not to the soaring prices of real estate in San Francisco):
1) We will figure out the true valuations of these tech companies. You need an event like this to make it happen.
2) Money from this liquidity event will cycle back into the market creating a whole host of new ventures. Innovation and creativity are back. That’s exciting.
3) Excitement and new-born confidence in the startup market will bring additional funding.
4) Acquisition market will heat up as these newly public companies will make their own investments.
5) Individuals in these organizations will purchase things injecting money into the overall economy.
It’s been a while since we’ve seen the IPO market heat up. I’m glad it’s back.
